Setting up and operating a charity in Ireland
We often hear about small voluntary organisations wishing to become more formalised, to have a more formal structure. This enables them to provide more services, attract donations and apply for grants. And be in a more attractive position than just being registered with the county council PPN (Public Participation Networks). Consideration should be given to starting a charity. Such a change as setting up and operating as a charity in Ireland involves several costs, both initial and ongoing. There are also People costs in terms of hours, and skills required, to consider. Below is an overview of the main expenses you may encounter.
Initial Setup Costs
• Legal Fees: You might need legal advice to draft your governing documents (e.g., constitution, memorandum, and articles of association) and to navigate the regulatory requirements. Legal fees can range from €1,000 to €5,000 depending on the complexity of your charity’s structure.
• Registration Fees: There is no fee for registering a charity with the Charities Regulator, but if you decide to set up as a company limited by guarantee (CLG), you will need to register with the Companies Registration Office (CRO). The registration fee is around €50 to €100.
• Insurance: It’s advisable to secure insurance (e.g., public liability, employer liability, or trustee indemnity insurance). The cost varies depending on the size and activities of your charity but can range from €500 to €2,000 annually.
Ongoing Operating Costs
• Annual Compliance: Charities must submit annual returns to the Charities Regulator and the CRO if operating as a CLG. Compliance costs, including accounting fees, can range from €1,000 to €3,000 annually, depending on the charity’s size and complexity.
• Office Space and Utilities: If your charity requires office space, this will be a significant ongoing cost. Rent, utilities, and maintenance can add up, especially in urban areas. Costs vary widely, but you should budget for at least €10,000 to €30,000 annually for a small office.
• Staffing Costs: If your charity employs staff, you need to consider salaries, benefits, and other HR costs. This can be a significant part of your budget, depending on the number of employees and their roles.
Finance Costs
• Fundraising Costs: Fundraising expenses, such as event costs, marketing, and donor management systems, can also be significant. The costs depend on the fundraising strategy but can range from a few thousand to tens of thousands of euros annually.
• Accounting and Auditing: Depending on your charity’s size, you might be required to have your accounts audited. Costs for auditing services typically range from €2,000 to €10,000 per year, depending on the charity’s income and activities.
• Banking Fees: Charities may face banking fees for managing accounts, processing donations, and other financial services. These can vary based on the financial institution and the volume of transactions.
Potential Additional Costs
• Training and Development: Ongoing training for staff and volunteers can incur additional costs, especially for specialized programs.
• Technology and Software: Costs for website hosting, CRM systems, and other software tools can add up. Budget for these according to your charity’s technological needs.
Summary
While setting up a charity in Ireland is relatively straightforward, the costs can add up depending on the complexity of the organisation, its size, and the scope of its activities. It’s important to budget carefully and plan for both the initial setup costs and the ongoing operational expenses to ensure the long-term sustainability of your charity.
You may also consider seeking grants, donations, or fundraising to cover some of these costs, especially during the initial stages.
For further information on Starting a Charity, check out
And Rosie McDonagh of the hygiene charity, the Hygiene Hub spoke on the Panel of Entrepreneurs at StartUp Ballymun’s Rise Up: Innovation Unleashed this April past.
Talk to Billy
For general advice on organisational design, and aligning structure with Goals of organisation – and budget. You are very welcome to contact Billy, [email protected]., see services HERE .
